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Accounting for Construction Loan Draws: A Comprehensive Guide
Author: Dr. Evelyn Reed, CPA, CMA, is a seasoned accounting professional with over 20 years of experience specializing in real estate and construction accounting. She holds a PhD in Accounting from the University of California, Berkeley, and is a frequent speaker at industry conferences on topics related to construction finance.
Publisher: This report is published by the Institute for Construction Management (ICM), a leading authority on best practices in the construction industry. The ICM has a long-standing reputation for providing accurate and reliable information to professionals in the field. Its publications are widely respected for their depth and practical application.
Editor: Mr. David Chen, a seasoned editor with the ICM and a certified public accountant with 15 years of experience in auditing construction companies, meticulously reviewed this report to ensure accuracy and clarity. His expertise in accounting for construction loan draws played a vital role in the report's final form.
Keywords: accounting for construction loan draws, construction loan accounting, construction loan draw schedule, draw requests, construction in progress, cost accounting, real estate accounting, loan draw process, progress payments, construction accounting software
1. Understanding Construction Loan Draws
Construction loan draws are crucial for funding construction projects. Unlike traditional loans, construction loans are disbursed incrementally based on the progress of the project. This differs significantly from other loan types, requiring specialized accounting for construction loan draws to accurately track funds and project costs. The process of accounting for construction loan draws involves careful monitoring of project milestones, verifying expenses, and ensuring compliance with loan covenants. Effective accounting for construction loan draws is essential for maintaining accurate financial reporting and preventing potential disputes with lenders.
2. The Loan Draw Process: A Step-by-Step Guide
The typical loan draw process begins with the borrower submitting a draw request to the lender. This request usually includes detailed documentation such as invoices, progress reports, and certified payrolls, showing that work has been completed to justify the draw amount. The lender then reviews the documentation, verifying the completion of specified milestones and the legitimacy of expenses. Once approved, the funds are disbursed to the borrower. This process repeats throughout the construction phase, with the frequency of draws often determined in the initial loan agreement. Effective accounting for construction loan draws begins even before the first draw, with meticulous planning and budgeting to anticipate funding requirements accurately.
3. Key Accounting Principles for Construction Loan Draws
Several key accounting principles underpin the process of accounting for construction loan draws. These include:
Accrual Accounting: Revenue and expenses are recognized when earned or incurred, regardless of when cash changes hands. This is crucial for accurately reflecting the project's financial position throughout the construction period.
Matching Principle: Expenses are matched with the related revenue in the same accounting period. In the context of accounting for construction loan draws, this means expenses related to a specific draw are recognized in the same period the draw is received.
Construction in Progress (CIP): This account tracks the accumulated costs of a construction project until completion. It is increased by each loan draw and decreased by expenses as they are incurred.
Interest Capitalization: Interest expenses incurred during the construction period may be capitalized as part of the project cost, depending on specific accounting standards and loan terms. This adds complexity to the process of accounting for construction loan draws.
4. Documentation and Record Keeping
Meticulous record-keeping is paramount for successful accounting for construction loan draws. All documentation related to draws, including draw requests, lender approvals, invoices, receipts, and progress reports, should be carefully organized and securely stored. This documentation is crucial not only for accurate accounting but also for auditing purposes and potential disputes with lenders. Utilizing construction accounting software can significantly streamline this process and minimize errors.
5. Common Challenges in Accounting for Construction Loan Draws
Despite the established principles, challenges can arise in accounting for construction loan draws. These include:
Delays in Draw Approvals: Delays can disrupt cash flow and impact project timelines.
Discrepancies between Actual Costs and Budgeted Costs: Variance analysis is crucial to identify and address cost overruns.
Changes in Project Scope: Changes require careful adjustments to the draw schedule and related accounting entries.
Compliance with Loan Covenants: Failure to adhere to loan covenants can have significant financial consequences.
6. Software Solutions for Streamlining the Process
Specialized construction accounting software can greatly simplify accounting for construction loan draws. These software solutions often include features such as:
Automated Draw Request Generation: Simplifies the process of creating and submitting draw requests.
Progress Tracking and Reporting: Provides real-time insight into project progress and costs.
Automated Reconciliation: Facilitates reconciliation between actual costs and draw amounts.
Financial Reporting: Generates customized reports for various stakeholders.
7. The Importance of Audits and Internal Controls
Regular audits and robust internal controls are essential for ensuring the accuracy and reliability of the accounting for construction loan draws. Independent audits provide assurance that the financial reporting is compliant with accounting standards and accurately reflects the project's financial position.
8. Tax Implications of Construction Loan Draws
The tax implications of accounting for construction loan draws are complex and vary depending on specific circumstances. It’s essential to consult with a tax professional to ensure compliance with relevant tax regulations. Accurate accounting is crucial for accurate tax reporting and minimizing potential tax liabilities.
Conclusion
Effective accounting for construction loan draws is critical for successful construction projects. By adhering to established accounting principles, maintaining meticulous records, utilizing appropriate software, and implementing robust internal controls, construction companies can ensure the accurate tracking of funds, timely project completion, and minimized risk of disputes with lenders. The complexities involved underscore the need for professional expertise and diligent attention to detail throughout the entire process.
FAQs
1. What is a construction loan draw schedule? A construction loan draw schedule is a predetermined plan that outlines the timing and amounts of loan disbursements based on project milestones.
2. How often are construction loan draws typically made? The frequency of draws varies depending on the project size and lender requirements, but it's usually monthly or bi-monthly.
3. What documents are typically required for a construction loan draw request? These usually include invoices, progress reports, lien waivers, and certified payrolls.
4. What happens if a draw request is denied? A denied draw request requires immediate communication with the lender to understand the reasons for denial and rectify any issues.
5. How are loan interest costs handled in construction accounting? Interest costs can be capitalized as part of the project cost under certain conditions, adding to the CIP account.
6. What is the role of a construction lender in the draw process? The lender reviews the draw request documentation, verifying completion of milestones and the legitimacy of expenses before approving the disbursement.
7. What software is commonly used for accounting for construction loan draws? Examples include Sage 300 CRE, Jonas Premier, and others.
8. What are the penalties for inaccurate accounting of construction loan draws? Inaccurate accounting can lead to disputes with lenders, delays in project completion, and even legal action.
9. Where can I find more information on accounting standards for construction projects? Resources like the Governmental Accounting Standards Board (GASB) and the Financial Accounting Standards Board (FASB) provide relevant guidance.
Related Articles
1. Construction Loan Draw Process: A Practical Guide: This article provides a step-by-step guide to navigating the loan draw process, emphasizing practical advice for borrowers.
2. Construction Cost Accounting: Best Practices: This article focuses on effective cost accounting methods specifically for construction projects, providing a foundation for accurate loan draw accounting.
3. Understanding Construction in Progress (CIP): A detailed explanation of the CIP account, its role in construction accounting, and its relationship to loan draws.
4. Top Construction Accounting Software: A Comparison: A comparison of popular construction accounting software, highlighting features relevant to loan draw management.
5. Avoiding Common Pitfalls in Construction Loan Management: This article addresses common challenges in managing construction loans and offers practical solutions for preventing problems.
6. Construction Project Budgeting and Forecasting: Effective budgeting and forecasting are essential for accurate prediction of loan draw needs.
7. Risk Management in Construction Lending: This article explores risk mitigation strategies from a lender's perspective, relevant to the draw approval process.
8. The Role of Technology in Construction Accounting: This article focuses on how technology, including specialized software, is transforming construction accounting practices.
9. Compliance and Auditing in Construction Accounting: This article emphasizes the importance of compliance with accounting standards and the role of regular audits.
| accounting for construction loan draws: Commercial Real Estate Investing Jack Cummings, 2004-10-13 Simple and to the point, Commercial Real Estate Investing presents 12 easy-to-follow steps that anyone can use to build a life of financial independence. Full of real-world examples, insider tips, and tried-and-true advice from one of the most published real estate authors in America, this comprehensive resource covers everything you need to know about profiting in commercial real estate—including financing, valuation, due diligence, leverage, equity, using other people’s money, and much more. Packed with fresh ideas, proven techniques, and effective strategies for solving problems during negotiations and making a profit even if you sell for less than you paid, Commercial Real Estate Investing gives you all the tools you need to start amassing your fortune today. |
| accounting for construction loan draws: Accounting and Financial Management for Builders Emma S. Shinn, 1988 |
| accounting for construction loan draws: Mark to Market Accounting Walter P. Schuetze, 2004-06-02 This Volume, edited by Peter W. Wolnizer, Professor of Accounting at the University of Sydney, makes available the collected writings of Walter P. Scheutze, a senior accounting practitioner. The articles, speeches and letters collected here probe the most fundamental problems of corporate financial reporting, cogently arguing the case for accounting reform and proposing well-informed solutions to these problems. |
| accounting for construction loan draws: Contractor's Guide to QuickBooks Pro 2003 Karen Mitchell, Craig Savage, Jim Erwin, 2003 Easily master QuickBooks Pro 2003 and quickly learn how to generate reports to help you analyze your company's progress. Includes a FREE CD-ROM with preconfigured construction company files for QuickBooks Pro, including one for Canada. Just drag the company file onto your hard drive and then fill it in with your vendors, subs, and customers. Also included is a complete estimating program with a cost database to help you estimate your jobs, and a unique translation tool to transfer the estimate to QuickBooks Pro for job costing. Includes 40 FREE construction forms. |
| accounting for construction loan draws: Contractor's Guide to Quickbooks Pro 2002 Karen Mitchell, Craig Savage, Jim Erwin, 2002 According to a recent national survey, more construction contractors use QuickBooks Pro and QuickBooks than all other accounting programs combined. And for good reason. QuickBooks Pro excels at all the routine paperwork in a construction office: writing checks, keeping track of your bank balance, sending out invoices and statements, creating up-to-the-minute profit and loss statements for the month, year or by job, writing payroll checks, paying suppliers and subcontractors, tracking job costs, comparing estimated and actual costs for each job, and much more. But there's a lot to learn in QuickBooks Pro. And converting to a new accounting system can be a complex and confusing task, even if you have a strong background in accounting and plenty of time to install the new system. That's why this book was written -- because most construction pros aren't accounting experts and have more important work to do at the job site. |
| accounting for construction loan draws: Construction Guide Eric P. Wallace, 2008 Construction Guide provides CPAs with guidance on the accounting, auditing, and reporting that are particular to the construction industry. In addition, it provides CPAs with guidance on engagements for a wide range of situations, including those special to utility contractors, road builders, home construction, home builders, real estate developers, commercial construction, residential construction, and more. The book includes work programs, practice aids, checklists, and sample reports. |
| accounting for construction loan draws: Cost Accounting and Financial Management for Construction Project Managers Len Holm, 2018-09-03 Proper cost accounting and financial management are essential elements of any successful construction job, and therefore make up essential skills for construction project managers and project engineers. Many textbooks on the market focus on the theoretical principles of accounting and finance required for head office staff like the chief financial officer (CFO) of a construction firm. This book's unique practical approach focuses on the activities of the construction management team, including the project manager, superintendent, project engineer, and jobsite cost engineers and cost accountants. In short, this book provides a seamless connection between cost accounting and construction project management from the construction management practitioner’s perspective. Following a complete accounting cycle, from the original estimate through cost controls to financial close-out, the book makes use of one commercial construction project case study throughout. It covers key topics like financial statements, ratios, cost control, earned value, equipment depreciation, cash flow, and pay requests. But unlike other texts, this book also covers additional financial responsibilities such as cost estimates, change orders, and project close-out. Also included are more advanced accounting and financial topics such as supply chain management, activity-based accounting, lean construction techniques, taxes, and the developer’s pro forma. Each chapter contains review questions and applied exercises and the book is supplemented with an eResource with instructor manual, estimates and schedules, further cases and figures from the book. This textbook is ideal for use in all cost accounting and financial management classes on both undergraduate and graduate level construction management or construction engineering programs. |
| accounting for construction loan draws: Building Your Own Home For Dummies Kevin Daum, Janice Brewster, Peter Economy, 2011-03-04 Keep construction on track with helpful checklists Turn your dream of a custom home into reality! Thinking about building your own home? This easy-to-follow guide shows you how to plan and build a beautiful home on any budget. From acquiring land to finding the best architect to overseeing the construction, you get lots of savvy tips on managing your new investment wisely -- and staying sane during the process! Discover how to: * Find the best homesite * Navigate the plan approval process * Obtain financing * Hire the right contractor * Cut design and construction costs * Avoid common mistakes |
| accounting for construction loan draws: Builder's Guide to Accounting Michael C. Thomsett, 2001-07 This book includes self-test section at the end of each chapter. Test yourself, then check answers in the back of the book to see how you score. CD-ROM included. |
| accounting for construction loan draws: Excel for Accountants Conrad Carlberg, 2007 Presents a guide that aims to assist accountants in creating the reports, explanations, and planning documents needed by clients. Provides downloadable example files which are compatible with all versions of Excel from Office 97 through Office 2003, and can also be opened with Excel 12 (in Office 2007). |
| accounting for construction loan draws: Builder , 1995-05 |
| accounting for construction loan draws: Principles of Construction Lending , 2002 |
| accounting for construction loan draws: Guide to Real Estate & Mortgage Banking Software , 1990 |
| accounting for construction loan draws: Impact of Faulty and Fraudulent Real Estate Appraisals on Federally Insured Financial Institutions and Related Agencies of the Federal Government United States. Congress. House. Committee on Government Operations. Commerce, Consumer, and Monetary Affairs Subcommittee, 1986 |
| accounting for construction loan draws: Commercial Investment Real Estate Journal , 1989 |
| accounting for construction loan draws: Litigation Services Handbook, 2016 Cumulative Supplement Roman L. Weil, Daniel G. Lentz, 2016-04-18 The financial expert's litigation 'bible', updated and expanded The updated Litigation Services Handbook is an indispensable reference for financial experts offering litigation support services. The text is a robust framework for all aspects of the litigation process, written by experts drawing upon years of institutional knowledge, experience, and techniques. It can be used alone or in conjunction with Litigation Services Handbook, Fifth Edition. A wide variety of cases illustrate important concepts, and in-depth, actionable coverage spans trial preparation, testimony, deposition, investigation, and more. This update includes the latest procedures and changes to the law, and a discussion on emerging technology explores its impact on the financial expert's practice. Two new chapters have been added to provide additional insight into the accountant's role in litigation, the the focus on investigation makes this book a highly practical reference for any practitioner in the field. The increased need for financial witnesses and consultants to litigators has created plentiful opportunity for accountants, economists, and other practitioners. This book provides clear, comprehensive guidance for each step of the litigation process, to help practitioners enhance their practice in the courtroom and beyond. Leverage financial expertise to provide litigation support services Successfully prove damages with effective investigation techniques Maintain authority while presenting accurate, thorough, and eloquent testimony Get up to date on new technology and Sarbanes-Oxley implementation Litigation support requires a specific skill set and knowledge base, some of which may fall outside of everyday procedure, and all of which continue to evolve with new procedures, tools, and methods. Litigation Services Handbook, 2016 Cumulative Supplement provides the most up-to-date case law and best practices financial experts need to know. |
| accounting for construction loan draws: Builder & Contractor , 1989 |
| accounting for construction loan draws: Litigation Services Handbook, 2015 Cumulative Supplement Roman L. Weil, Daniel G. Lentz, 2015-04-13 The financial expert's guide to best practices for litigation services Litigation Services Handbook is the litigation bible for accountants, economists, and other financial experts. Newly updated to reflect recent rulings and changes in law and procedure, this uniquely useful guide covers all aspects of litigation services, with a focus on investigation throughout. Each chapter is written by an expert in the field, and draws upon their institutional knowledge, experience, and techniques to give you a concrete framework for trial preparation, testimony presentation, deposition, fraud investigation, and more. A wealth of cases illustrates how to prove damages, and gives you real-world insight into the entire litigation process from a financial expert's perspective. The discussion includes Sarbanes-Oxley implementation, new technological tools, and the practical consideration of court appearances. The need for financial experts to act as witness and consultant to litigating attorneys is growing faster than litigation itself, and it's important for practitioners offering their services to have a firm grasp of the necessary procedures and expectations surrounding effective financial litigation consultation. This guide provides the most up-to-date case law and best practices financial experts need to know. Understand the accountant's role in litigation Conduct a thorough investigation that proves damages Present your testimony accurately, thoroughly, and eloquently Maintain authority under direct and cross examination Twenty years ago, few certified public accountants or economists offered litigation-related services; now, a large number devote their practice to this area. As the practice evolves, so do the procedures, tools, and methods. Comprehensive and up-to-date, Litigation Services Handbook is the indispensable reference that every practitioner needs to succeed in offering litigation support services. |
| accounting for construction loan draws: Substantial Rehabilitation & New Construction William Duncan, 2013-11-11 The procedures in this manual distill six years of learning about the most efficient acquisition and construction methods in this country for high volume production of housing affordable to low-income people. The people in the Rehab Work Group at The Enterprise Foundation have gathered this information first-hand and conveyed it in training workshops on production management throughout the country. Over 2000 participants in the workshops have included rehab specialists from city housing departments, con struction managers of single and multifamily rehab projects, program managers from both nonprofit housing development organizations and city rehab depart ments, as well as students in colleges and universities. They are becoming the backbone of a new cadre of effective producers of affordable housing. In the 30 cities and several rural areas where we have both learned and applied these production management techniques, they have resulted in savings of 5, 10, even 25 percent of the cost of housing development. The Enterprise Foundation is a national, nonprofit organization that my wife Patty and I launched in 1982. The Foundation's mission is to see that all very low-income Americans have the opportunity for fit and affordable housing within a generation, and work their way up and out of poverty into the main stream of American life. |
| accounting for construction loan draws: The Woman CPA. , 1973 |
| accounting for construction loan draws: The Software Encyclopedia 2000 Bowker Editorial Staff, 2000-05 |
| accounting for construction loan draws: Construction Accounting & Financial Management Stephen Peterson, 2013-10-03 For all courses in construction accounting and construction finance, and for courses in engineering economics taught in construction management programs. This book helps construction professionals and construction management students master the principles of financial management, and adapt and apply them to the challenge of profitably managing construction companies. It integrates content that has traditionally been taught through separate accounting, finance, and engineering economics texts. Students learn how to account for a construction company’s financial resources; how to manage its costs, profits, and cash flows; how to evaluate different sources of funding a company’s cash needs; and how to quantitatively analyze financial decisions. Readers gain hands-on experience through 220 example problems and over 390 practice problems, many of them based on situations actually encountered by the author. This edition adds more than 100 new discussion questions, and presents financial equations and accounting transactions more visually to support more intuitive learning. |
| accounting for construction loan draws: Opportunities and Options Keith McClellan, G. L. Gittings, 2002 |
| accounting for construction loan draws: Tools and Techniques for Housing Development , 1983 |
| accounting for construction loan draws: Understanding the Sophisticated Real Estate Practice , 1999 |
| accounting for construction loan draws: Recent Trends in Decision Science and Management Tao-Sheng Wang, Andrew W. H. Ip, Madjid Tavana, Vipul Jain, 2020-05-07 This book discusses an emerging field of decision science that focuses on business processes and systems used to extract knowledge from large volumes of data to provide significant insights for crucial decisions in critical situations. It presents studies employing computing techniques like machine learning, which explore decision-making for cross-platforms that contain heterogeneous data associated with complex assets, leadership, and team coordination. It also reveals the advantages of using decision sciences with management-oriented problems. The book includes a selection of the best papers presented at the 2nd International Conference on Decision Science and Management (ICDSM 2019), held at Hunan International Economics University, China, on 20–21 September 2019. |
| accounting for construction loan draws: Ebook: Real Estate Finance and Investments BRUEGGEMAN, 2010-06-16 Ebook: Real Estate Finance and Investments |
| accounting for construction loan draws: The Language of Real Estate John W. Reilly, 2000 From abandonment to zoning, and over 2,800 terms in between, The Language of Real Estate has every term that real estate professionals need. this industry best seller is a must have for all students, practitioners, and educators. Highlights include: * Appendix boasts over 350 commonly used abbreviations. * Subject classification index lists terms by topic. * Spanish key terms help both ESL students and thosewho will be working with ESL customers. |
| accounting for construction loan draws: Running a Successful Construction Company David U. Gerstel, 2002 A guide to running a construction company that provides tips and information on creating operating procedures, improving worker skills, using computers, keeping the right forms and paperwork up to date, competitive bidding, and other topics. |
| accounting for construction loan draws: Contractor's Guide to QuickBooks Pro 2004 Karen Mitchell, Craig Savage, Jim Erwin, 2004 According to a recent national survey, more construction contractors use QuickBooks Pro and QuickBooks than all other accounting programs combined. And for good reason. QuickBooks Pro excels at all the routine paperwork in a construction office: writing checks, keeping track of your bank balance, sending out invoices and statements, creating up-to-the-minute profit and loss statements for the month, year or by job, writing payroll checks, paying suppliers and subcontractors, tracking job costs, comparing estimated and actual costs for each job, and much more. But there's a lot to learn in QuickBooks Pro. And converting to a new accounting system can be a complex and confusing task, even if you have a strong background in accounting and plenty of time to install the new system. That's why this book was written -- because most construction pros aren't accounting experts and have more important work to do at the job site. Contractor's Guide to QuickBooks Pro 2004 will walk you step-by-step through QuickBooks Pro's detailed setup procedure and then explain item-by-item how you should be using QuickBooks Pro every day. In days, rather than weeks, you'll create a first-rate accounting system that's an asset to your company. Here you'll find simple, well-illustrated instructions for customizing the setup for QuickBooks Pro 2004, including what each screen on your monitor should look like. This manual explains every choice you need to make and every button you need to click on. And it tells you how to get a trial version of QuickBooks Pro if you want to try it before buying, and includes two other programs you'll want to use when estimating costs with QuickBooks Pro. With this book, the CD in the back with the software and data files just described, and QuickBooks Pro 2004, you have at your fingertips all the financial tools needed to keep your books straight, and your company running strong and in the black. Book jacket. |
| accounting for construction loan draws: QuickBooks 2012 In Depth Laura Madeira, 2012-08-10 Do more in less time! Whether you’re an entrepreneur, accountant, or bookkeeper, this comprehensive guide will help you get the most out of QuickBooks 2012: more productivity, more business knowledge, and more value! Drawing on her unsurpassed QuickBooks consulting experience, Laura Madeira delivers step-by-step guides and practical checklists for taking total control over business finances, and improving everything from planning to reporting, payroll to invoicing! • Create new files; convert from other software; and set up users, permissions, and preferences • Master all the essentials of financial reporting • Understand QuickBooks lists: from the chart of accounts, items, classes and more • Set up and manage inventory, vendors, customers, and payroll • Track customer leads • Work with bank and credit card accounts • Create repeatable reports • Review the accuracy of your data, step by step • Share QuickBooks data with accountants • Reliably back up data • Troubleshoot database errors and monitor QuickBooks databases • Use QuickBooks 2012’s tools for managing loans, planning, preparing for year-end, and syncing with Outlook • Efficiently review and correct client data errors, from misclassified transactions to incorrect beginning balances • Prepare customized financials using MS Excel and Word integration • Master powerful shortcuts for working more efficiently and saving precious time All In Depth books offer • Comprehensive coverage with detailed solutions • Troubleshooting help for tough problems you can’t fix on your own • Outstanding authors recognized worldwide for their expertise and teaching style Learning, reference, problem-solving...the only QuickBooks 2012 book you need! |
| accounting for construction loan draws: QuickBooks 2013 In Depth Laura Madeira, 2013-02-21 Do more in less time! Whether you’re an entrepreneur, accountant, or bookkeeper, this comprehensive guide will help you get the most out of QuickBooks 2013: more productivity, more business knowledge, and more value! Drawing on her unsurpassed QuickBooks consulting and accounting experience, Laura Madeira delivers step-by-step guides and practical checklists for taking total control over business finances and improving everything from planning to reporting and payroll to invoicing. • Create a new QuickBooks file; convert from other software; and set up users, permissions, and preferences • New! Learn how to use tools specific to your version of QuickBooks, including QuickBooks Enterprise Solutions • Understand QuickBooks lists from the chart of accounts, items, classes, and more • Set up and manage inventory, vendors, customers, and payroll • Track product or service sales and manage the profitability of your company • Efficiently download bank and credit card transactions • Master all the essentials of financial reporting; customize and memorize reports • Review the accuracy of your data, with step-by-step instructions accompanied by checklists • Share QuickBooks data with your accountant or client at tax time • Use QuickBooks 2013’s tools for managing loans, planning and preparing for year-end, and syncing with Outlook contacts • Efficiently review and correct client data errors, from misclassified transactions to incorrect beginning balances • Prepare customized reports and documents using MS Excel and Word integration • Master powerful shortcuts for working more efficiently and saving precious time • Learn how to reliably back up your data, troubleshoot database errors, and manage QuickBooks data integrity All In Depth books offer • Comprehensive coverage with detailed solutions • Troubleshooting help for tough problems you can’t fix on your own • Outstanding authors recognized worldwide for their expertise and teaching style Learning, reference, problem-solving...the only QuickBooks 2013 book you need! |
| accounting for construction loan draws: The Code of Federal Regulations of the United States of America , 2007 The Code of Federal Regulations is the codification of the general and permanent rules published in the Federal Register by the executive departments and agencies of the Federal Government. |
| accounting for construction loan draws: Contractor's Guide to QuickBooks Pro 2005 Karen Mitchell, Craig Savage, Jim Erwin, 2005 Walks anyone through Quickbooks Pro's detailed setup procedure and explains step-by-step how to create a first-rate accounting system for a construction business. It teaches in days, rather than weeks, how to use QuickBooks Pro to get a construction business organized, with simple, fast accounting proceedures. On the CD included with the book, there's a QuickBooks Pro file preconfigured for a construction company (drag it over onto your computer and plug in your own company's data). Also included is a complete estimating program, including a database, and a job costing program that lets you export your estimates to QuickBooks Pro for progressive billing and job cost accounting. It even includes many useful construction forms to use in estimating and accounting. |
| accounting for construction loan draws: GAAP Implementation Guide Steven M. Bragg, 2004-06-07 The most practical, authoritative guide to implementing GAAP Until now, accountants have had no guidance for what controls,policies, procedures, forms, reports, or archiving requirementsthey should use to properly mesh with the latest GAAP. An idealcompanion volume to the Wiley GAAP guide, the GAAPImplementation Guide provides the practical applicationinformation essential to ensuring that a company's accountingsystems are fully capable of incorporating the most recentGAAP. GAAP Implementation Guide features handy,illustrative decision trees showing how to determine which GAAPruling to use in a variety of situations, eliminating hours of timewading through detailed GAAP rulings. Other helpful, timesavingfeatures include: A concise version of the more detailed GAAP found in the WileyGAAP guides Specific accounting policies that comply with GAAP, especiallyin terms of creating controls that mesh with GAAP The most common accounting transactions modified to work withinGAAP restrictions Specific controls that allow the maximum level of control overaccounting systems while remaining in compliance with GAAP Templates for forms and reports that can be used in aGAAP-compliant accounting system Numerous examples of footnotes that can be used to describeGAAP-mandated financial disclosures Hundreds of GAAP-compliant journal entries for most accountingtransactions Identification of the types of reports and other information tobe retained as part of a comprehensive accounting system GAAP Implementation Guide is a valuable tool forCFOs, controllers, accounting managers, and general ledgeraccountants who need to ensure that their company properly treatsall types of accounting transactions in accordance with GAAP. |
| accounting for construction loan draws: Business Planning for Affordable Housing Developers R. M. Santucci, 2013 Using a seven step process, real estate developers will be mentored through the path to creating a three to five year business plan. It includes a template outlining the narrative and spreadsheet format for administrative and capital projections. It also includes examples of real estate plans from successful operations. The seven steps to create a fundable plan are: Describe the Business, Evaluate the Environment, Plan Organization, Management, and Personnel, The Financial System, Marketing Strategy, Identify and Defeat Risk, and Develop and Sell Your Plan. This niche guidance is targeted to Real Estate Developers and nonprofit organizations who are actively pursuing a successful path to long term sustainability. |
| accounting for construction loan draws: Mortgage Banking Terms , 1978 |
| accounting for construction loan draws: Data Sources , 2000 |
| accounting for construction loan draws: American Builder , 1955 |
| accounting for construction loan draws: Financing Real Property Transactions , 1977 |
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SCHEDULE RC-L – OFF-BALANCE SHEET ITEMS - FDIC
(4) Loan proceeds that the bank is obligated to advance, such as: (a) Loan draws; (b) Construction progress payments; and (c) Seasonal or living advances to farmers under …
STATE OF CONNECTICUT CLEAN WATER FUND - DRINKING …
conformity with U.S. generally accepted accounting principles. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the …
Examination Handbook 213, Construction Lending, January …
• Minimum covenants for loan agreements. Construction Loan Risk Factors . Construction loans are susceptible to a number of major risk factors, such as: • Uncertainty associated with …
Still Independent
will be contacted by your Construction Loan Specialist regarding conversion. The One-Time Close Construction Loan will automatically convert into a permanent mortgage and your principal and …
Understanding Homebuilders Financial Statements
Customer Deposits / Construction Draws Billings in excess of costs and estimated earnings on uncompleted contracts Development and construction loans payable Payroll taxes withheld …
Loans & investments guide - Viewpoint
was added to provide guidance on the accounting for commitment fees for non-revolving credit facilities that provide for unscheduled draws with varying maturities. LI 4.10. was updated to …
IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN …
the entity into which Mahoney’s construction loan draws from Rabun County Bank would be deposited, and out of which the construction loan payments to venders would be issued. …
GOVERNMENTAL ACCOUNTING 101 - HintonBurdick
FUND ACCOUNTING Governmental accounting systems are organized and operated on a fund basis. A fund is defined as: A fiscal and accounting entity with a self-balancing set of accounts …
CONSTRUCTION LOAN AGREEMENT - Fannie Mae
multistate construction loan agreement –single-family—fannie mae model document form 3735 07/2021 page 1 of 12. this is a model document for use in fannie mae loan construction …
The Holdback Account - cwilson.com
(i) 80% progress draws paid to the contractor according to the value of the work as the project proceeds; (ii) 10% Builders Lien Act holdback paid to an account that the contractor agrees to …
Job Title: Construction Loan Specialist - onelocalbank.com
Feb 13, 2025 · • Maintain the disbursement of construction loan draws. Respond to and calculate pay off/partial release figures for individual lots and loans. • Along with tracking and …
Builder and Borrower Engagement Playbook
Introduce Built prior to loan closing Loan Officers are informing the borrowers and builders that the lender uses the Built platform for all construction loan draw processing. The borrower and …
ROBINSON KIOKO MINDA CV - supplychain-africa.org
Performed necessary maintenance and entries as required by loan modifications, deferrals, new and renewed transactions. Keys and balances monetary transactions such as payments, …
DEPARTMENT OF THE TREASURY INTERNAL REVENUE …
5 TL-N-1157-00 2 Section 4.3(a) of the Purchase Agreement listed only certain “obligations and liabilities arising after the Closing Date”. amount equal to the current fair market value of the …
A guide to accounting for investments, loans and other …
2.2.6 Accounting for short sales of equity securities ..... 28 2.2.7 Accounting for simple agreement for future equity (SAFE) investments ..... 28 3. Accounting for debt securities (including certain …
19 for periodic draws to fund construction upon satisfaction …
6 loan agreement. 7 % Proposed §25.510(h)(1)(B)-Construction and Term Loan Facility 9 Proposed §25.510(h)(1)(B) states that a senior secured first lien construction and term loan …
Theresa DeMarco
orders, lien waivers, construction loan draws, and RFI’s. Pulte Homes, West Bloomfield, MI SUPERINTENDENT (1997-1999) • Managed the construction of multiple tracts of new homes, …
ACCOUNTING FOR INDIVIDUAL BORROWER 502 LOAN …
construction/permanent financing in the form of a Single Family Housing Direct Home Loan (Section 502). They are independent of private or conventional lending institutions; the …
WHAT YOU NEED TO KNOW ABOUT CONSTRUCTION LOAN …
into your construction checking account at First Service Bank. All draws must be approved by your loan officer prior to processing; the loan officer will review at the receipt of the draw …
TIF Financing Successful Structures and Analysis
In a Perfect World… Developer Buy Box looks like this: By right zoning Location near key assets Site is clean – no surprises Stable interest rate environment
Multifamily Pool Delivery Module (MFPDM) - MyGinnieMae
Figure 85: 01 Initial Construction Loan (CL) Loan Details Page 80 Figure 86: 01 Initial Construction Loan (CL) Draw History Details Page 81 Figure 87: Subsequent Construction …
CONSTRUCTION LOAN AGREEMENT - Granicus
Borrower shall use the Loan Funds solely for the payment of: (A) the costs of constructing or making the Improvements in accordance with the Construction Contract; (B) other costs and …
Tighter Credit Standards and Bank Liquidity - qc.berkadia.com
crisis and additional construction loan draws. The mortgage banker panel indicated that the slowdowns in quote activity have been relatively recent, and the data used is a lagging …
GASB Pronouncements that were Effective Immediately Upon …
Apr 3, 2021 · Accounting for Interest Cost Incurred before the end of a Construction Period This statement suspends paragraphs 5-22 of GASB 62. Do not capitalize interest cost related to …
Guidance Note on Accounting for Real Estate Transactions
Feb 11, 2012 · 1.4 Real estate transactions of the nature covered by Accounting Standard (AS) 10, Accounting for Fixed Assets, Accounting Standard (AS) 12, Accounting for Government …
CONSTRUCTION LOAN PROCESS - GreenStone FCS
The Sworn Statement is an ever-changing document initiated at the start of the loan process to estimate initial costs of the project for the loan, to request draws, and to monitor the budget …
We are hiring a Senior Analyst in our Commercial Financing …
• Monitor on-going construction loan draws, cross-referencing budgets, and ensuring applicable undertakings are performed ... accounting with a real estate focus • Familiarity with principles …
Chapter 6 DRAWDOWNS - HUD Exchange
1. Only grantee users can approve draws. 2. The user who creates a draw cannot also approve it. 3. All draws on State grants must be approved by a State user. Note, too, that a drawdown …
Guidance for CDBG Grantees: Transition from First-In, First …
Revolving loan funds (RL) and State revolving funds (SF) will be funded and ... First-Out to Grant-Specific Accounting in IDIS . PI Funding and Draws . The PI fund type appears on the Activity …
Statutory Issue Paper No. 37 Mortgage Loans - National …
Construction Loans 14. A construction loan shall be defined as a mortgage loan of less than three years in term, made for financing the cost of construction of a building or other improvement to …
Construction Loan Information for Applicants and Builders
A2. Rural Development Construction Procedures and Forms are found in RD Instruction . 1924-A and Handbook HB-1-3550 Chapter 5 (pages 5-37.) Q3. How does USDA convert the …
Job Description - communityhdc.org
• Keep track of all the Project-related grant/loan draws in terms of documentations, payment to ... and loan ledger activities. • Conduct monthly closing and bank account reconciliation. ... • …
Job Description for Asset Management Analyst Summary of ...
• Assemble construction loan draws to lender for new leases and capital improvement projects ... working in asset management, finance, accounting or property management experience • …
The Basics of Construction Accounting & Financial …
Jun 3, 2015 · Importance of a Job Cost System Goals: •Understand how accurate job costing fits into the whole construction process •Understand the importance of knowing all your costs …
Understanding the Stages of Regions Construction-to …
A Construction-to-Permanent mortgage (CP loan) is a three-stage mortgage that allows you to finance the construction of your new home. A Regions CP loan allows you to lock in your …
